Forex Analysis & Reviews: 24.03.2022 - The UK FCA has a tough...

24.03.2022 07:36 PM

The UK FCA has a tough policy against cryptocurrency companies

Bitcoin is not going to retreat from the assault on the $ 43,000 level, and we may see its breakdown in the near future. But whether it will be possible to gain a foothold above this range after that is a big question. Ether also feels comfortable around $ 3,000, but investors' pessimism is gradually approaching a critical mark. The well-known fear and greed index was now at 40 points, which is very close to the fear zone. Last week, the index showed 27 points at all, which could lead to a powerful sell-off of the cryptocurrency market, but investors resisted. If there is no progress at the above levels, trading instruments will see a downward correction to more acceptable support levels in the next few days, at which the major players will show themselves again. This will also lead to an increase in the fear index.

In the UK, they continue to tighten the screws on companies providing services in the field of cryptocurrencies. As it became known, all firms providing such services must be registered with the Financial Supervision Authority. Most likely, this kind of measure will force many cryptocurrency companies to wind down their business in the UK. Interestingly, the news about this appeared only today, and less than a week remains before the deadline, after which it will be prohibited to work under the old scheme.

As I noted above, from March 31, firms providing services in the field of cryptocurrencies must be registered with the Financial Supervision Authority. He is also tasked with monitoring how digital asset firms fight money laundering. Last year, the regulator extended the deadline allowing firms in the temporary register to continue working without proper registration. Now, the FCA has stated that many crypto companies have already withdrawn their applications because they did not meet the required anti-money laundering standards.

Many are seriously concerned about the fate of the $ 33 billion fintech company Revolut and the crypto startup Copper, whose adviser is former British Finance Minister Philip Hammond. The issue of these companies is hanging in the air, and their future in the UK is uncertain. Many industry representatives also expressed dissatisfaction with the way the FCA handles the cryptocurrency registry (especially how it approves applications and ignores requests.

The FCA said that at the moment only 33 applications have been approved, and more than 80% of firms that could work in the UK have already withdrawn applications or been refused. "We have seen a large number of companies dealing with crypto assets that apply for registration while knowing that they do not meet the requirements," the FCA said. "Firms that did not meet the criteria were refused registration." Firms whose applications have been rejected by the FCA can appeal, but this is a lengthy process and may need to go through court.

Many experts said that such measures could put the UK at a disadvantage at a time when it is struggling to become a world leader in financial innovation.

As for the technical picture of bitcoin

Bitcoin has hit the $ 43,150 mark, and so far going beyond this range is problematic. The breakdown and active purchases above can play at the level of investors' greed, which will lead to reaching the next monthly highs in the areas of $ 45,780 and $ 48,500. The fact that bitcoin feels pretty great in the current conditions proves the interest in it, keeping its bullish potential in the long run. In the event of another decline in the trading instrument, only a breakdown of $ 40,500 will fail the trading instrument below, to a minimum of $37,500, and there it is at hand to $ 34,300.

As for the technical picture of the ether

The focus remains on the resistance of $ 3,050. Only the consolidation above will continue the upward trend for the trading instrument. The breakdown of $ 3,050 will serve as a new impulse to reach the levels of $ 3,272 and $ 3,399. In case of a return of pressure on ETH, purchases in the area of large support of $ 2,830, as it was this weekend, are not excluded. A break in this range will be a reason to go to the lows of $ 2,670 and $ 2,500, where the major players will again begin to actively act.

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# Bitcoin # Ethereum # BTCUSD # ETHUSD Crypto-currencies

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